An Overview of Creditor-Debtor Law and Judgment Enforcement Techniques

CAUTION STATE LAW VARIANCES ! ! !

Judgment enforcement law is about as non-uniform

between the various states as any body of law.

Obtaining a judgment is often not the end of the case, but just the beginning of post-judgment enforcement proceedings. In the vast majority of court cases in the United States, if a party loses that party will simply pay the judgment, particularly if it is a claim that is covered by insurance. But in a very substantial number of cases, the debtor doesn't pay: What then? The creditor is left holding a judgment and wondering whether it can be monetized.

What is an judgment worth? The value of a judgment is determined by the following formula:

The face value of the judgment;

Limited by what can be collected from the debtor; and

Less the attorney's fees and other costs of collection.

Thus, a creditor may hold a judgment for $10 million against a debtor who is truly penniless; the value of that judgment is zero, or may even be negative if the creditor expends any significant money in a vain attempt to collect. Similarly, a judgment for $25,000 may also be worth nothing, or have a negative value, if the expenses to collect that judgment meet or exceed its value.

This website focuses on the processes and techniques that are used to collect on unpaid judgments, based on the personal experience of the author as an attorney who represents both creditors and debtors in post-judgment enforcement proceedings.

RECENT ARTICLES BY JAY ADKISSON

2017.05.16 ... No, There Is No Important Public Policy Exception To Recognizing A Sister-State Judgment

Private Investigation - Non-judicial methods of investigating the debtor's assets and affairs, including database searches and the use of private investigators.

Written Discovery - Some states allow for written discovery to be propounded to a debtor, which is a good way to start accumulating information from the debtor, or at least what the debtor claims is his assets.

Debtor Examinations - The traditional way of obtaining information from a debtor, which is to haul them into court, sit them down at a table, and ask questions point-blank about assets and income.

Writ of Levy - The remedy that allows the Sheriff to grab the asset and auction it off on the courthouse steps.

Charging Orders - The "exclusive" remedy against a debtor/member's interest in a partnership, limited partnership, or limited liability company.

Assignment Orders - An order used to intercept income streams, such as advertising revenues, royalty payments, etc.

Creditor Suits - Actions taken against a third-party who has possession of an asset that is still titled in the name of a debtor, or who has violated some other enforcement process.

Receivers - Often the end-game strategy to take a difficult debtor down, by having the court appoint a neutral with all the powers of the debtor, such as to sell season football tickets, or dissolve corporations.

About Jay Adkisson - Abbreviated background of the creator of this website and Jay's contact information

OTHER WEBSITES BY JAY ADKISSON

About Jay Adkisson

About Jay Adkisson

Jay's personal webpage with his background, lists of his books and articles, and past and future speaking appearances, are found at jayadkisson.com

Asset Protection Book

Asset Protection Book

Information about the all-time best-selling book Asset Protection: Concepts & Strategies, by Jay Adkisson and Chris Riser (McGraw-Hill 2004), and also translated into Chinese for publication in Asia, is found here

Captive Insurance Companies

Captive Insurance Companies

Jay is the author of Adkisson's Captive Insurance Companies, which is the all-time best-selling work on the subject, and a collection of his musings and articles about captives are found at captiveinsurancecompanies.com

Charging Orders

Charging Orders

An examination, with Jay's commentary, about the so-called Harmonized Acts (the Uniform Partnership Act, the Uniform Limited Partnership Act, and the Uniform Limited Liability Company Act) as they relate to charging orders, and a collection of Jay's articles on the subject, is found at chargingorder.com

Quatloos!

Quatloos!

Jay's award-winning and frequently cited website regarding various tax schemes and financial scams, with a popular comment board for those scams, is found at quatloos.com

Riser Adkisson LLP

Riser Adkisson LLP

For the website of Jay's law firm, Riser Adkisson LLP, and information about his legal services, see risad.com

Voidable Transactions (was Fraudulent Transfers)

Voidable Transactions a/k/a Fraudulent Transfers

An examination, with Jay's commentary, about the Uniform Voidable Transactions Act a/k/a 2014 Revisions to the Uniform Fraudulent Transfers Act, for which Jay was an American Bar Association Adviser to the Drafting Committee of the Uniform Law Commission, is found at voidabletransactions.com